Monday, March 4, 2024

Black Friday sales forecast to reach $6.2 billion

The Black Friday sales are set to provide retailers with strong results in the lead up to Christmas with research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan forecasting sales to reach a record $6.2 billion over the four-day Black Friday/Cyber Monday weekend (Friday 25 November to Monday 28 November 2022).

Australian retailers will benefit from the early sales momentum as Aussie shoppers aim to make their purchases ahead of price rises and continued supply chain disruptions.

ARA CEO Paul Zahra released the forecasts today at Amazon’s new robotics fulfilment centre in Kemps Creek, which was opened in January 2022, more than doubling Amazon’s operational footprint. Amazon has significantly invested in and expanded its operations network to increase selection and enable a fast and reliable delivery experience for customers for the holidays.

“The Black Friday sales are the biggest pre-Christmas event on the retail calendar and its popularity is continuing to grow in Australia. After starting off as an American shopping tradition, the Black Friday sales have become a global phenomenon and millions of Aussies are set to take part,” Mr Zahra said.

“The event is renowned for having the biggest pre-Christmas bargains and this year will be no different. We’re expecting huge amounts of traffic in-stores and online, with sales to reach $6.2 billion this year – an increase of $200 million on 2021,” he said.

Around a quarter (25%) of Christmas shopping is completed in Black Friday week alone with a third (33%) already completed in the first three weeks of November according to Salesforce’sHoliday Insights Hub, – showing how Australians love a bargain and are shopping earlier to avoid disappointment. The Salesforce research also shows the average discount rate will be highest during Cyber Week, averaging 22%.

“We know that many people are more conscious about their household budgets with the cost of living going up and interest rates on the rise, so the Black Friday sales are an ideal time to complete your Christmas purchases, save money and ensure that your gifts are delivered on time,” said Mr Zahra.

“There’s no doubt it’s a challenging economic environment, but what’s pleasing is that retail sales overall are currently at record levels. The impacts of rising interest rates and inflation have yet to slow household spending and we’re forecasting upbeat trading with pre-Christmas sales forecast to reach nearly $64 billion – a 3% increase on last year.

“2023 is set to be a more challenging year with a slowdown expected to Australia’s economic growth. But as it stands right now, consumer spending is strong and that’s set to continue over the festive trading period, which will give many businesses confidence for their most important time of year.”

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